WhiteHorse Finance (NASDAQ:WHF) Releases Earnings Results, Misses Estimates By $0.03 EPS

Key Points

• WhiteHorse Finance missed quarterly estimates: Earnings were $0.22 per share versus the $0.25 consensus, while revenue of $14.37 million fell short of expectations of $15.66 million.
• The company declared a $0.25 quarterly dividend, equivalent to $1.00 annually and a 14.6% yield; however, its 243.9% payout ratio indicates the dividend exceeds reported earnings.
• Insiders purchased nearly 95,000 shares during the last quarter, but analyst sentiment remains cautious, with an average “Reduce” rating and a $7.50 target price.

WhiteHorse Finance (NASDAQ:WHF - Get Free Report) posted its earnings results on Monday. The investment management company reported $0.22 earnings per share for the quarter, missing analysts' consensus estimates of $0.25 by ($0.03), FiscalAI reports. The business had revenue of $14.37 million during the quarter, compared to analysts' expectations of $15.66 million. WhiteHorse Finance had a net margin of 13.46% and a return on equity of 9.47%.

WhiteHorse Finance Price Performance

Shares of WhiteHorse Finance stock opened at $6.87 on Tuesday. The company has a debt-to-equity ratio of 1.30, a current ratio of 2.23 and a quick ratio of 2.23. The business has a 50 day simple moving average of $6.55 and a two-hundred day simple moving average of $6.89. The stock has a market capitalization of $147.48 million, a P/E ratio of 16.75 and a beta of 0.38. WhiteHorse Finance has a 12 month low of $6.07 and a 12 month high of $8.97.

WhiteHorse Finance Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, October 5th. Investors of record on Monday, September 21st will be given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 14.6%. The ex-dividend date is Monday, September 21st. WhiteHorse Finance's dividend payout ratio is 243.90%.

Insider Transactions at WhiteHorse Finance

In other news, Director John Bolduc acquired 15,380 shares of the company's stock in a transaction that occurred on Thursday, June 18th. The stock was purchased at an average price of $6.49 per share, with a total value of $99,816.20. Following the completion of the acquisition, the director owned 317,297 shares of the company's stock, valued at $2,059,257.53. This trade represents a 5.09% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Stuart D. Aronson purchased 15,000 shares of WhiteHorse Finance stock in a transaction dated Monday, June 15th. The shares were purchased at an average cost of $6.41 per share, for a total transaction of $96,150.00. Following the transaction, the chief executive officer owned 127,000 shares in the company, valued at approximately $814,070. This trade represents a 13.39% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders bought 94,940 shares of company stock valued at $627,568 over the last quarter. Company insiders own 3.80% of the company's stock.

Institutional Trading of WhiteHorse Finance

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Marshall Wace LLP acquired a new stake in WhiteHorse Finance during the 2nd quarter worth approximately $368,000. Bank of America Corp DE grew its position in shares of WhiteHorse Finance by 92.0% during the second quarter. Bank of America Corp DE now owns 185,004 shares of the investment management company's stock worth $1,613,000 after acquiring an additional 88,659 shares during the last quarter. Oxford Asset Management LLP acquired a new position in WhiteHorse Finance in the second quarter valued at $105,000. Two Sigma Investments LP raised its stake in WhiteHorse Finance by 27.5% during the 3rd quarter. Two Sigma Investments LP now owns 231,140 shares of the investment management company's stock valued at $1,599,000 after acquiring an additional 49,893 shares during the last quarter. Finally, Citadel Advisors LLC lifted its holdings in shares of WhiteHorse Finance by 190.8% during the third quarter. Citadel Advisors LLC now owns 21,418 shares of the investment management company's stock worth $148,000 after purchasing an additional 45,018 shares during the period. Hedge funds and other institutional investors own 13.20% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on WHF. Weiss Ratings cut shares of WhiteHorse Finance from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, June 2nd. JPMorgan Chase & Co. lowered their price target on WhiteHorse Finance from $6.50 to $6.00 and set an "underweight" rating for the company in a research report on Thursday, July 2nd. Two analysts have rated the stock with a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, WhiteHorse Finance has an average rating of "Reduce" and an average target price of $7.50.

About WhiteHorse Finance

WhiteHorse Finance Corporation NASDAQ: WHF is a closed-end management investment company organized as a business development company under the Investment Company Act of 1940. The firm's primary objective is to generate current income and, to a lesser extent, capital appreciation by making debt and equity investments in privately held middle-market companies. WhiteHorse Finance seeks to partner with established businesses across a range of industries, providing flexible financing solutions designed to support growth initiatives, acquisitions and recapitalizations.

The company's investment portfolio predominantly comprises senior secured loans, second-lien debt, subordinated debt and select equity interests.

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